By Anora Mahmudova and Victor Reklaitis, MarketWatch
Best Buy shares jump after earnings
The S&P 500 and Nasdaq Composite traded in record territory
on Thursday as U.S. stocks advanced for a sixth straight session,
thanks in part to big gains in shares of Best Buy after quarterly
results.
The S&P 500 index rose 10 points, or 0.5%, to 2,415, after
setting an intraday record of 2,417.52. Nine of the 11 main sectors
traded higher, led by gains in consumer-discretionary shares, but
energy stocks were off more than 1%.
Some technical analysts suggested closing at these levels would
prompt a further rally in broader markets.
"Assuming the breakout is confirmed, short-term upside is likely
greatest for small- and mid-cap stocks given their relatively
oversold position," said Katie Stockton, chief technical strategist
at BTIG.
If the S&P 500 closes higher Thursday, this would mark the
11th time the large-cap index has risen for six sessions in a row
in the past five years. In the 10 previous incidences, stocks were
higher two weeks later 80% of the time, with an average gain of 57
basis points, according to Frank Cappelleri, executive director at
Instinet LLC.
The Nasdaq Composite Index also hit an intraday record at
6,210.50, and was most recently up 44 points, or 0.7%, to
6,207.
The Dow Jones Industrial Average climbed 72 points, or 0.4%, to
21,085, within shouting distance of its record close of 21,115.55
on March 1.
Gains were underpinned by robust earnings, according to Steve
Chiavarone, portfolio manager at Federated Global Allocation
Fund.
"A 15% earnings growth in the first quarter was all achieved
without any fiscal stimulus, so investors can afford to be patient
even as tax cuts and deregulation reforms are being delayed,"
Chiavarone said.
Investors appeared to shrug off a dip in oil prices. On
Thursday, crude prices sank nearly 4% after Saudi Arabia's oil
minister Khalid al-Falih ruled out deeper cuts
(http://www.marketwatch.com/story/oil-prices-turn-sharply-lower-after-saudi-oil-minister-rules-out-deeper-cuts-2017-05-25)
to production in any extension to an OPEC output agreement.
But the Organization of the Petroleum Exporting Countries did
agree to a nine-month extension
(http://www.marketwatch.com/story/opec-says-it-will-extend-production-cuts-through-march-2018-2017-05-25)
to the current deal at Thursday's meeting in Vienna, Austria, as
expected.
"Oil is very volatile as markets hang on every word coming from
the OPEC meeting in Vienna. Headlines so far are not supporting the
bull," said Neil Wilson, senior market analyst at ETX Capital, in a
note.
Potentially market-moving headlines may also come out as
President Donald Trump continues his overseas trip, meeting
European Union leaders
(http://www.marketwatch.com/story/brexit-fan-trump-meets-eu-leaders-for-the-first-time-2017-05-25)--new
French President Emmanuel Macron
(http://www.marketwatch.com/story/macron-tests-the-limits-of-frances-fifth-republic-2017-05-19)
in particular--and then attending NATO events.
Individual movers: Shares in Best Buy Co. (BBY) soared 10% after
the retailer beat profit expectations
(http://www.marketwatch.com/story/best-buys-stock-rockets-after-profit-and-sales-beat-upbeat-guidance-2017-05-25),
reported a surprise increase same-store sales and provided an
upbeat outlook.
Medical devices maker Medtronic PLC(MDT), rose 1.5% after
earnings and revenue topped views
(http://www.marketwatch.com/story/medtronic-profit-and-sales-rise-beat-expectations-2017-05-25).
HP Inc.(HPQ) is off 3.6% after rising earlier following
better-than-expected quarterly results
(http://www.marketwatch.com/story/hp-stock-jumps-more-than-7-after-earnings-beat-2017-05-24).
See:HP boosted by double bump from PC and printer growth
(http://www.marketwatch.com/story/hp-boosted-by-double-whammy-of-pc-and-printer-growth-2017-05-24)
But Signet Jewelers Ltd.(SIG) dropped 4.7% after the retailer's
earnings fell short of forecasts
(http://www.marketwatch.com/story/signet-jewelers-earnings-fall-short-unveils-plan-to-outsource-credit-portfolio-2017-05-25).
Signet's debt
(http://www.marketwatch.com/story/fitch-downgrades-signet-to-bb-from-bb-plus-2017-05-25-9913731)was
promptly downgraded by Fitch following earnings. Dollar Tree
Inc.(DLTR) climbed 3.2% after its quarterly results
(http://www.marketwatch.com/story/dollar-tree-earnings-meet-expectations-tweaks-full-year-outlook-2017-05-25).
Hormel Foods Corp.(HRL) sank 6.7% on disappointing quarterly
sales. The Spam maker said pressure on its Jennie-O Turkey Store is
likely to continue
(http://www.marketwatch.com/story/hormel-sales-falls-short-with-pressure-from-jennie-o-turkey-store-expected-to-continue-2017-05-25).
Economic news: Initial jobless claims rose by 1,000 to 234,000
in the seven days stretching from May 14 to May 20, largely in line
with expectations.
Advanced U.S. trade deficit in goods widened by 3.8% in April to
$67.6 billion.
Check out:
St. Louis Fed President James Bullard is slated give a talk in
Japan about the American economy after the U.S. market's close--at
11 p.m. Eastern.
Other markets:European stocks
(http://www.marketwatch.com/story/european-stocks-grapple-with-lower-liquidity-oil-price-volatility-2017-05-25)
were mostly lower, while Asian markets closed with gains
(http://www.marketwatch.com/story/asia-stocks-higher-south-korea-shares-soar-as-interest-rates-hold-steady-2017-05-25).
Gold futures edged higher
(http://www.marketwatch.com/story/gold-firms-aims-to-snap-back-to-back-declines-2017-05-25)
and a key dollar index
(http://www.marketwatch.com/story/us-dollar-rises-against-commodity-currencies-after-opec-agreement-2017-05-25)
traded flat. Meanwhile, the yield on the 10-year Treasury note fell
to 2.25%.
--Victor Reklaitis contributed to this report.
(END) Dow Jones Newswires
May 25, 2017 13:41 ET (17:41 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.